Nearly 73% households in India are now getting less value on groceries and essentials for the same or more money spent, compared to pre-pandemic time. In a recent survey to assess how their monthly household grocery and essentials costs have changed in the last six months, 44% respondents said they have been spending more and getting less; 10% said they have been spending same and getting less; 19% said they have been spending more and getting same; while 17% said they have been spending same and getting same. Only 2% said they have been spending less and getting more, and another 2% said they have been spending less and getting the same.
Community and social media platform LocalCircles conducted the survey to understand how people’s experience has been with purchasing groceries, especially onions, potatoes, and tomatoes after consumers reported rising prices over the last couple of weeks. The survey received over 15,000 responses from 216 districts across India. 63% respondents were from tier 1, 24% from tier 2 and 13% respondents were from tier 3, 4 and rural districts. Also, LocalCircles tried to understand if consumers are spending more on essentials and groceries since the COVID-19 pandemic started.
When citizens were asked what best describes the per kilogram price that they paid for tomato, onion and potato in their latest purchase, 40% said they paid Rs 70 or higher for tomatoes, Rs 35 or higher for potatoes and Rs 30 or higher for onions, while 21% said they paid Rs 60-69 for tomatoes, Rs 30-34 for potatoes and Rs 25-29 for onions. Nineteen percent said they paid Rs 40-59 for tomatoes, Rs 20-29 for potatoes and Rs 15-24 for onions, whereas 7% said they paid Rs 39 or lower for tomatoes, Rs 19 or lower for potatoes and Rs 14 or lower for onions. Further, 13% were unsure about what they paid recently.
This means that 61% households are currently paying more than Rs 60/kg for tomatoes, Rs 30/kg for potatoes and Rs 25/kg for onions. The main cause of this price rise in vegetables is being attributed to excessive rain, labour shortage and also an increase in transportation cost due to the higher diesel prices. This is especially concerning as many have lost jobs and many others are experiencing a drop in earnings and wages, LocalCircles says. As per Centre for Monitoring of Indian Economy’s latest data, 21 million jobs have been lost till Aug 31, 2020 from the time the pandemic began. For many, the increase in prices of essentials is adding up to higher weekly spends.
Consumers in March and April 2020 had reported being charged higher prices for essentials like vegetables as well as packaged products, where some were charged above MRP due to shortages in the market due to the lockdown and panic buying.
Crop damage due to heavy rains and hoarding are also being suspected as a reason for this sudden price rise in vegetables. The COVID-19 pandemic and the subsequent lockdown has created a worrisome and uncertain situation for many. Many citizens are already facing reduced household incomes due to the economic downturn and job losses, and the doubling of vegetable prices in the last few days is pinching their pockets even more. The Central government, in collaboration with various state governments will have to take immediate action to ensure that the prices of these essentials are brought under control so that citizens can get some relief, LocalCircles says.